Foreign firms are increasingly looking to hire tech talent from Latin America, as skill shortage worsens in the developed world, particularly in the United States.
“It’s a logical extension of the pandemic work-from-home drift away from hubs like San Francisco and New York to less expensive locations,” reported Bloomberg.
Foreign companies hunting for LatAm tech talent has increased by a staggering 156%, with software developers leading the recruiting rally, the newswire reported citing a recent study by global hiring firm Deel.
Cultural and time zone alignments are the two major factors pushing American companies to look for IT professionals south of their border.
“If I’m hiring a person in Cleveland, why not just hire a person in Bogota? They’re both remote, they’re both in the same time zone. And I can do that in a much more cost-efficient way right now,” Bloomberg reported, quoting Josh Brenner, CEO of Hired, as saying.
The growing demand for talent is pushing up wages across the region. Considering the report, tech salaries have risen by almost 50% since the pandemic.
Thanks to inflation and the rising demand for digital transformation services, tech wages in the United States have skyrocketed.
Consulting firm Korn Ferry has recently projected that the US tech talent shortage would reach 1.2 million by 2030.